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  • Writer's pictureJennifer Bernstein, CCIM

Top 5 Emerging Trends in Commercial Real Estate in 2024

Updated: Feb 7

The emerging commercial real estate trends and landscape are constantly evolving, and 2024 is shaping up to be a particularly exciting year. From the continued impact of the pandemic to the rise of new technologies, there are a number of trends that are reshaping the market. Here are five of the most important trends to watch in 2024:


1. The Rise of the Hybrid Workplace

The COVID-19 pandemic has had a profound impact on the way we work, and this is reflected in the commercial real estate market. While some companies are still slowing returning to traditional office spaces, many have permanently adopted hybrid models that allow employees to work from home some of the time. This is leading to a demand for more flexible office space, with a focus on collaboration and amenities that make coming into the office worthwhile. These amenities are nothing new but certainly more important than ever.


2. The Growth of Life Sciences and Data Centers

The life sciences and technology sectors are booming, and this is driving demand for specialized commercial real estate. Life sciences companies need facilities that can accommodate research and development, while data centers need to be able to handle the ever-growing amount of data traffic. These sectors are expected to continue to grow in 2024, so investors who can identify and capitalize on these trends are likely to be well-rewarded.


Futuristic Data Center
Data Centers Rising in Needs

3. The Focus on Sustainability

Investors and tenants are increasingly looking for sustainable commercial real estate. This means properties that are energy-efficient, water-efficient, and made from recycled materials. There are also a growing number of green building certifications, such as LEED, that are becoming increasingly important in the market. In 2024, we can expect to see even more focus on sustainability as investors and tenants alike look to reduce their environmental impact.


4. The Embrace of Technology

Technology is playing an increasingly important role in commercial real estate. From property management software to virtual tours, there are a number of technologies that are making the market more efficient and transparent. In 2024, we can expect to see even more innovation in the proptech space, as companies develop new ways to use technology to improve the way we buy, sell, and manage commercial real estate. I will make an entire post another day dedicated to new proptech as there are so many options out there for a variety of applications.


5. The Shift to Sunbelt Markets

The Sunbelt region, which includes states like Texas, Florida, and Arizona, is experiencing strong economic growth and population inflows. This is leading to a growing demand for commercial real estate in these markets. In 2024, we can expect to see even more investment in Sunbelt markets, as investors look to capitalize on the region's strong growth potential.


In addition to the trends mentioned above, here are a few other things to keep an eye on in 2024:

  • The impact of rising interest rates on the commercial real estate market;

    • as a large portion of loans are coming due in the next year.

    • construction starts decreasing again (last was during COVID)

      • will supply of some sectors fall behind demand?

  • The continued growth of e-commerce and its impact on logistics and warehouse space.

  • The impact of e-commerce and the push to experience based shopping trends changing the retail property space

  • The increasing importance of ESG (environmental, social, and governance) factors in investment decisions.

The commercial real estate market is constantly evolving, it can be difficult to predict what the future holds and none of us have crystal balls. However, by understanding historical economic cycles, you can more easily identify key trends that are shaping the market so as investors and business owners we can make informed decisions and position ourselves for success.

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